LONG-TERM INVESTMENTS

Long-term investments consist of the following:



	December 31, 2015		December 31, 2014
Investments accounted at cost	$	41,231	$	32,239
Investments accounted under the equity method	21,495		20,484
	$	62,726	$	52,723

(a) Cost-Method Investments:

Long-term investments consist of the following investments accounted for at cost:



	December 31, 2015				December 31, 2014
	Carrying Value		Fair Value		Carrying Value		Fair Value
Investment partnerships	$	40,730	$	44,217	$	31,541	$	38,039
Real estate partnership	501		552		698		1,108
	$	41,231	$	44,769	$	32,239	$	39,147

The principal business of the investment partnerships is investing in investment securities and real estate. The estimated fair value of the investment partnerships was provided by the partnerships based on the indicated market values of the underlying assets or investment portfolio. The investments in these investment partnerships are illiquid and the ultimate realization of these investments is subject to the performance of the underlying partnership and its management by the general partners. In the future, the Company may invest in other investments, including limited partnerships, real estate investments, equity securities, debt securities, derivatives and certificates of deposit, depending on risk factors and potential rates of return.

If it is determined that an other-than-temporary decline in fair value exists in long-term investments, the Company records an impairment charge with respect to such investment in its consolidated statements of operations. The Company will continue to perform additional assessments to determine the impact, if any, on the Company’s consolidated financial statements. Thus, future impairment charges may occur.

The Company has accounted for these investments using the cost method of accounting because the investments did not meet the requirements for equity method accounting.

The Company invested an aggregate $5,000 in three additional investment partnerships in 2015. The principal business of these investment partnerships is investing in investment securities. The Company also invested $5,000 in a reinsurance company in 2015. The Company received cash distributions of $587, $549 and $769 from limited partnerships in 2015, 2014 and 2013, respectively.

The long-term investments are carried on the consolidated balance sheet at cost. The fair value determination disclosed above

would be classified as Level 3 under fair value hierarchy disclosed in Note 18 if such assets were recorded on the consolidated balance sheet at fair value. The fair value determinations disclosed above were based on company assumptions, and information obtained from the partnerships based on the indicated market values of the underlying assets of the investment portfolio.

(b) Equity-Method Investments:

Long-term investments consist of the following investments accounted for under the equity method:



	December 31, 2015		December 31, 2014
Indian Creek Investors LP	$	4,989	$	8,053
Boyar Value Fund	7,302		—
Ladenburg Thalmann Financial Services Inc.	9,204		12,173
Castle Brands, Inc.	—		258
	$	21,495	$	20,484

The Company's investments accounted for under the equity method include the following: Indian Creek Investors LP (“Indian Creek”), Boyar Value Fund (“Boyar”), Ladenburg Thalmann Financial Services Inc. (“LTS”) and Castle Brands Inc. (“Castle”). At December 31, 2015, the Company's ownership percentages in Indian Creek, Boyar, LTS and Castle were 19.93%, 29.92%, 7.84% and 7.99%, respectively. The Company accounted for Indian Creek and Boyar interests as equity-method investments because the Company's ownership percentage meets the threshold for equity-method accounting. The Company accounted for the LTS and Castle interests as equity-method investments because the Company has the ability to exercise significant influence over their operating and financial policies.

The Company's investments under the equity method include an investment in the common stock of Boyar. As of December 31, 2015, the Company owned approximately 30% of the outstanding stock of Boyar. The value of the investment based on the quoted market price as of December 31, 2015 was $7,302, equal to its carrying value. Ladenburg Thalmann Fund Management, LLC, an indirect subsidiary of “LTS”, is the manager of Boyar.

At December 31, 2015, the aggregate values of the LTS and Castle investments based on the quoted market price were $39,167 and $15,585, respectively. The difference between the amount at which the LTS and Castle investments are carried and the amount of underlying equity in net assets was $21,463 and $1,848, respectively. This basis difference represents goodwill and is being accounted for as part of the equity investment.

The principal business of Indian Creek is investing in investment securities. Fair value approximates carrying value. The estimated fair value of the investment partnership was provided by the partnership based on the indicated market values of the underlying assets or investment portfolio. The investment in the investment partnership is illiquid and the ultimate realization of the investment is subject to the performance of the underlying partnership and its management by the general partners.

The Company received cash distributions of $2,364, $3,283 and $12,358 from the Company's investments in long-term investments under the equity method in 2015, 2014 and 2013, respectively. The 2013 distribution was primarily related to the repayment of a note from LTS. The Company recognized equity in losses in long-term investments under the equity method of $2,681 in 2015. The Company recognized equity in earnings in long-term investments under the equity method of $3,140 and $3,126 in 2014 and 2013, respectively. The Company has suspended its recognition of equity losses in Castle to the extent such losses exceed its basis.

The long-term investments are carried on the consolidated balance sheet at cost under the equity method of accounting. The fair value determination disclosed above would be classified as Level 3 under fair value hierarchy disclosed in Note 18 if such assets were recorded on the consolidated balance sheet at fair value.

Pursuant to Rule 4-08(g), the following summarized financial data for unconsolidated subsidiaries includes information for Indian Creek and Boyar Value Fund.



	December 31, 2015		December 31, 2014
Investment securities	$	40,676	$	71,331
Cash and cash equivalents	101		309
Other assets	8,664		32
Total assets	$	49,441	$	71,672

Other liabilities	$	408	$	6,571
Total liabilities	408		6,571
Partners' capital	49,033		65,101
Total liabilities and partners' capital	$	49,441	$	71,672



	Year Ended December 31,
	2015			2014			2013
Investment income	$	565		$	3,314		$	565
Expenses	(868		)	(1,298		)	(839		)
Net investment (loss) income	(303		)	2,016			(274		)
Total net realized (loss) gain and net change in unrealized depreciation from investments	(14,809		)	(168		)	16,496
Net (decrease) increase in partners' capital resulting from operations	$	(15,112	)	$	1,848		$	16,222

Pursuant to Rule 4-08(g) is the following summarized financial data for LTS. The Company has elected a three-month lag reporting period for LTS.



	September 30, 2015			September 30, 2014
Cash and cash equivalents	$	114,548		$	94,952
Receivables from clearing brokers, note receivable and other receivable, net	115,334			123,947
Goodwill and intangible assets, net	269,774			211,862
Other assets	63,634			62,571
Total assets	$	563,290		$	493,332

Accrued compensation, commissions and fees payable	$	72,936		$	61,205
Accounts payable and accrued liabilities	24,615			22,328
Notes payable, net of $1,655 and $951 unamortized discount in 2015 and 2014, respectively	59,184			62,131
Other liabilities	21,487			32,802
Total liabilities	178,222			178,466
Preferred stock	1			1
Common stock	19			18
Additional paid-in capital	517,988			452,263
Accumulated deficit	(132,952		)	(137,406		)
Total controlling shareholders' equity	385,056			314,876
Non-controlling interest	12			(10		)
Total shareholders' equity	385,068			314,866
Total liabilities and shareholders' equity	$	563,290		$	493,332

(1) The table above presents the nature and amounts of the major components of assets and liabilities, along with information regarding redeemable stock and non-controlling interest.



	Twelve Months Ended September 30,
	2015			2014			2013
Revenues	$	1,122,735		$	867,756		$	753,840
Expenses	(1,132,010		)	(856,072		)	(756,988		)
Gross (loss) profit	(9,275		)	11,684			(3,148		)
Change in fair value of contingent consideration	31			12			(121		)
(Loss) income from continuing operations	(9,244		)	11,696			(3,269		)
Net income (loss)	$	4,396		$	22,482		$	(5,389	)

Pursuant to Rule 4-08(g) is the following summarized financial data for Castle. The Company has elected a three-month lag reporting period for Castle.



	September 30, 2015		September 30, 2014
Current assets	$	36,922	$	31,121
Non-current assets	9,845		9,834
Total assets	$	46,767	$	40,955

Current liabilities	$	9,947	$	8,703
Non-current liabilities	13,696		12,028
Total liabilities	23,643		20,731
Total controlling shareholders' equity	19,978		17,490
Non-controlling interest	3,146		2,734
Total shareholders' equity	23,124		20,224
Total liabilities and shareholders' equity	$	46,767	$	40,955



	Twelve Months Ended September 30,
	2015			2014			2013
Revenues	$	67,143		$	51,426		$	43,484
Expenses	(41,317		)	(32,495		)	(28,117		)
Gross profit	25,826			18,931			15,367
Other expenses	(25,920		)	(20,399		)	(19,176		)
Loss from continuing operations	(94		)	(1,468		)	(3,809		)
Net loss	$	(2,946	)	$	(4,845	)	$	(8,604	)